NPD: TV Will Drive OLED Materials Market Growth

Growing demand from large TV panels is expected to increase OLED material revenues at a compound annual growth rate of 67 percent through 2017, even as material revenue from mobile phones slows after 2014. According to the Quarterly OLED Materials Report from NPD DisplaySearch, revenues from organic materials used in the emission and common layers of OLED displays are forecasted to reach $530 million in 2013 and grow to $3.4 billion by 2017. The growing importance of OLED materials is emphasized by this month’s announcement that Samsung, the leading OLED panel manufacturer, was acquiring Novaled AG, a developer of common-layer OLED materials.

Until recently, active-matrix organic light-emitting diode (AMOLED) displays have mainly been used in mobile phones, but AMOLED display manufacturers are now starting to make inroads into TVs, tablet PCs, and other large-area display applications. OLED TV unit shipments are expected to remain modest at less than a million units in 2014 and only reaching 10 million after 2017, when they will account for 10 percent of total OLED panel shipments. However, on an area basis, OLED TV panels are expected to account for 17 percent of the OLED display materials market in 2014 and will exceed the share of mobile phone panels by 2016.

“The large size of TV panels will result in OLED display area growing quickly through 2017,” noted Jimmy Kim, senior analyst for NPD DisplaySearch. “The demand for materials in the emission, common, and other OLED layers is proportional to the area of the panels; furthermore, the low yield rates for OLED TV panel manufacturing means that the consumption of raw materials is further increased; thus, the introduction of OLED TVs will result in rapid growth in the market for OLED materials.”

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Figure 1: Forecast of OLED Material Revenue by Application

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Source: NPD DisplaySearch Quarterly OLED Materials Report